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Barry on income tax rates

Dec 14, 2012|

Barry talks about income tax rates being increased for couples making $250,000. Barry and June also take your text questions.

Transcript - will not be 100% accurate

The Wall Street Journal and NBC did a poll in -- question asked was should income tax. Rates the increase for those couples making more than 250000. Dollars a year. Of all adults that they surveyed 76%. Yet said yes. A Democrat 89% of Democrats that raise taxes on those making more than 250 year. 69%. Of independents. Said they should raise taxes on those making more than 250 here here's the shocker to 61%. Of Republicans. Said in this survey. Bet anybody making more than 250 year should have a taxes increase. And pretty soon it's gonna be anybody that's making over fifty grand a year is gonna expect. Let me come on you know that's a -- what are they consider to be rich that's at a shocking poll number 61%. Of Republicans forget the other numbers very you can discount the other numbers out telecast -- that -- number 61% of registered Republicans saying they want taxes raised on if people making more than 250 in an effort to avert the fiscal -- that big number nine now. Question of the day was the Massachusetts teachers pension is under funded by eleven billion dollars. How should this shortfall be fixed what a text questions saying that the teachers should go on a forward -- yeah we get. A lot of those also 50 wait. -- eleven billion unfunny into the data has to be renegotiated to a plan that can be funded. Number one upped the retirement age to bigger contributions. Three lower retirement amounts in benefits for pay half towards their healthcare it. And many says if that doesn't work claim bankruptcy and restructure the pension. But it it tell you what happened in the private sector because I think the public sector will eventually file follow corporate America did back in 1990. When I was just beginning my professional career. The -- were weighted with the norm and when you work for company you receive it pension and a pension would be you've worked for that company for thirty years. He got a gold watch when you retired. And yet 2000 a month and a rocking chair yet an -- we got you've got a monthly. Guaranteed stream of income. In in appreciation for your years of service in more than half of corporate America offered such -- so if you worked for Raytheon. EE. New York life State Street bank that's what you hat. More than 50% of employers corporate employers had these defying their called defined benefit pension so you do that if you retired after thirty years working for State Street -- Raytheon. You were in and you retire with a salary of 80000 dollars that you're gonna get a pension 50000 dollars a year or whatever was that the form. And you get a statement every year I remember receiving these statements could receive a statement in the mail saying this is what -- going to get. Will corporate America back in 1990 half of America was on these defined benefit pension plan that's right. It corporate America and Wall Street was really the the the entity that insisted that these plans be abolished because Wall Street wanted cost certainty. With these plants. And so companies like IBM big companies that has had these defined benefit pension plans. Did away with them during the last twenty years so now less than 10%. Of corporate America. Has is covered by what's called a defined benefit pension plan. The public sector still has them many states still offer defined benefit pension plans but the public and -- the the the when you go out and you work in the private sector. It's basically become a dinosaur. And I think that is what's gonna happen in the public sector how long would take what's going to be take it's going to be an extended period time that you're gonna have. Pensions fail their pensions June. Across the country in states like Illinois. -- Rhode Island Indiana now where they put away less than half of the money necessary to fund their pension plans so we're sitting here were quite critical. Of Massachusetts for only having funded 66%. Of their teachers pension and you know where it we're not that bad relative to the -- the most. Gave him across the country and it would gut -- you know some folks that are just plain old angry and it's this six on seven and listen to a teacher whine about our class size. Any teachers meeting wanted to ask her about her lucrative contract I have no pity for them. And -- all and say hey you know what about us private sector deal still live awaits says have them contribute to a 401K like we'd have. -- think that's what will happen I think the eventual resolution to this problem is you'll have a couple states. That say you know what we can't continue. With these pension plans and in typically what happens is they freeze the old defined benefit pension plan -- that's an idea and it right so -- you you know if you were. Forty years old and you'd worked for IBM for twenty years and they didn't just take your pension away they're not allowed to do that but they froze right. And then they said okay you're not gonna get a pension anymore we're gonna give you 41 -- plan and we'll give you a 10% match on your forward to what about that mind it's frozen in the -- and still get it. We are getting my just extends a lot. Yeah that's right it is frozen so what would happen is if Massachusetts decided to do away with their defined benefit pension plan which I guarantee you will happen. It's you know Steve Grossman would denied -- to the nth degree in any politician running for office. -- tonight but at some point the unfunded liability becomes untenable and they somebody is gonna say it -- it may not happen in the next twenty years it could be something happens 2030 years from now. But at some point a governor in the political machine is gonna decide that we can't afford to pay these teachers their pensions so we're gonna freeze the pensions and we're gonna go to forward -- it and that's something I'm quite certain. Will occur as to win the polish crystal ball and you know who's happy there's ups and new project going on. In Roslyn damn now Rosalind dale had a shaky part of town the you know what we're gonna talk about it when we come back with Shirley Leung. From the Boston --